Daily Business Report: Monday, Jan.24, 2022
Commentary
Fast Food Bill will Discourage Small Business Owners
The legislation woud harm one of the most successful startup business models — franchising
By Matt Haller | Special to CalMatters
Matt Haller is president and CEO of International Franchise Association
A CalMatters’ article describing the FAST Recovery Act attempted to break down the pros and cons of the proposed legislation. The headline posed the question: Does Assembly Bill 257 empower workers or does it equate to government overreach?
The bill, which failed once in the Legislature, is a massive and unnecessary government intrusion.
However, the untold message about AB 257 is the damage this legislation will have on small businesses and small-business owners in California.
Why is that important to the broader economy?
There are more than 4.1 million small businesses in California, according to the Small Business Administration. California small businesses employed 7.1 million people,or 48.8 percent of the private workforce. In areas that include food services, 63 percent of employees work for small businesses.
Even California Gov. Gavin Newsom understands the importance of small business – his recently released California Blueprint made investing in small businesses a top priority by offering hundreds of millions in grants and tax breaks to small businesses.
What lawmakers should know is the harm the legislation would levy on one of the most successful startup business models – franchising. The franchise model, whereby a brand and business are developed by a franchisor and a franchisee pays for the right to distribute products and services in the model, is a time-honored success driver.
TOP PHOTO: Franchise business. (Photo via iStock)
General Dynamics NASSCO books $200 million
Navy award for USS Iwo Jima maintenance
GovCon Wire
General Dynamics NASSCO has secured a $199.7 million contract modification from the U.S. Navy to work on the USS Iwo Jima for the ship’s docking selected restricted availability in fiscal year 2022.
The modification exercises contract options for the amphibious assault ship’s SRA, which includes maintenance, repair work and drydocking, the Department of Defense said.
Work under the award will take place in Norfolk, Va. through June 2023.
The Navy will use fiscal 2022 other procurement funds to finance 88 percent of the new award and operations and maintenance funds for the remaining fraction.
The Norfolk-base Mid-Atlantic Regional Maintenance Center serves as the award’s contracting activity.
Alexandria Real Estate purchases
Costa Verde Center for $125 million
Leading biotech office builder Alexandria Real Estate has purchased the Costa Verde Center, a strip mall opposite Westfield UTC, to amplify its vision for a life science campus connected to the trolley line and its nearby properties.
The previous property owner, Jacksonville-based Regency Centers, said in a press release this week that it sold the 13.9-acre site — sandwiched between La Jolla Village Drive and Nobel Drive at 8560 Genesee Ave. — for $125 million. Dan Ryan, who is co-chief investment officer for Alexandria, confirmed the deal, which closed on Jan. 12.
ONI raises $75 million for microscopes for targeted therapies
Oni, a spin-out of Oxford University that recently moved its headquarters to San Diego, has raised $75 million in venture capital for microscope technology that helps researchers at the Salk Institute, La Jolla Institute for Immunology, and biotech firms observe single molecules on living cells to create targeted therapies. ONI will grow its team to 200 over the next year as the company expands in the U.S. and Asia.
Birch Aquarium COO selected for leadership
program of Association of Zoos and Aquariums
Charles Hopper, chief operating officer for Birch Aquarium at Scripps Institution of Oceanography, is one of 10 aquarium and zoo professionals selected for the Association of Zoos and Aquariums’ (AZA) Executive Leadership Development Program (ELDP).
The program’s goal is to develop executive talent and leadership for individuals who demonstrate the ability and interest to advance to the role of director within the AZA-accredited facility in the next five years.
“It is critical for any profession to proactively develop its leadership pipeline, and that is precisely why we created the Executive Leadership Development Program,” said Dan Ashe, president and CEO of AZA.
“This group of candidates stepped forward because they are committed to the advancement of the zoological profession and their own personal growth and development.”
Alicia M. Bond joins Jacko Law Group
as director of operations in San Diego
Jacko Law Group, a San Diego-based law firm that provides securities and corporate counsel to the financial industry, has added counsel Alicia M. Bond as director of operations with practice areas that include firm strategy, business operations, corporate law and governance matters, and strategic growth and planning.
Prior to joining JLG, Bond served on the corporate legal team for Welk Resorts as compliance manager and legal executive assistant to SVP general counsel and corporate secretary.
Among her skills, board management, compliance, and corporate governance, Bond has practiced law for more than 15 years and has been an experienced litigator and trial attorney for law firms in Florida, Illinois, and Mississippi.
Bond has handled both criminal and civil matters with practice areas including breach of contract, construction law, corporate law, employment law, family law, insurance claims, lemon law, nonprofit management, personal injury, trusts and estate, as well as other general business matters.
She currently serves as board member and development co-chair for the Chicano Federation of San Diego County.
Matthew Adams and Anthony Belef take
top executive positions at Evans Hotels
Evans Hotels, the family-owned hospitality company comprised of the Bahia Resort Hotel, Catamaran Resort Hotel and Spa, and The Lodge at Torrey Pines, announced the hiring of Matthew Adams as its new executive vice president and chief operating officer, and Anthony Belef as its new chief human resources officer.
Adams will supervise all operations for Evans’ resorts, as well as the Bahia Belle and William D. Evans sternwheelers, and Belmont Laundry, which provides laundry services for the properties. Belef will oversee the human resources function for the company.
Prior to joining Evans Hotels, Adams served as chief operating officer for Windsor Hospitality, based in Santa Monica, and executive vice president of operations for Omni Hotels. Before that, he built a 30-year career in the hospitality industry managing iconic hotels in the United States and Europe, including the Grand Hyatt New York, Manchester Grand Hyatt San Diego, and Park Hyatt Paris
Belef brings 25 years of hospitality experience in both operations and human resources. Prior to joining Evans Hotels, Belef worked for Omni Hotels and Resorts as a director and area director of human resources. For the last six years, he led the Human Resources team at the Omni La Costa Resort and Spa, and also supported a portfolio of Omni properties, including locations in Texas and all of Omni’s California properties.
Sony Electronics COO elected to board
of North San Diego Business Chamber
The North San Diego Business Chamber elected Neal Manowitz, president and chief operating officer of Sony Electronics Inc., to its board of directors. Manowitz is in charge of Sony Electronics’ operations in the United States and Canada.
He has over 25 years’ experience with Sony in a variety of roles and responsibilities across its businesses.
Neal brings to the table a strong global and local perspective and understands the impact Sony’s employees have on the region locally.
“Neal’s strong background in technology, with expertise and knowledge in engaging closely with customers, will contribute to the chamber’s goal of growing our relevancy to future generations while providing exceptional service to members,” said Debra Rosen, president and CEO of the chamber.
The chamber’s diverse board is made up of small, medium and large businesses and represents many industries and companies located throughout the region.
San Diego home prices end year
on high note — but not a record
San Diego County’s median home price finished 2021 at $743,000, capping a year of record gains. Local prices had increased 15.2 percent in a year as of December, reported CoreLogic/DQNews on Thursday. The median — which includes new and resale condos, townhouses and single-family homes — hit a peak of $750,000 in November.
Analysts have pointed to persistent low inventory, coupled with high demand, as the reason for big price increases. Competition among buyers has meant many offers over asking price and paying with all cash to make offers more enticing.
December’s job report distorted
by seasonal changes
Seasonal trends punished December’s job numbers, but the unemployment rate managed to decline further. San Diego’s December jobless rate dropped from 4.6 percfent to 4.4 percent after adjusting for seasonal volativity.
Although the immediate read on San Diego firms was gloomy with a loss of 1,200 jobs, it was primarily seasonal. After adjusting the data for seasonal fluctuations, as done by the California Employment Development Department, companies added 4,200 jobs.
“People should not overreact to the headline,” emphasized Lynn Reaser, chief economist at Point Loma Nazarene University. “December typically sees a pullback in such industries as construction and hospitality. Although the report may indicate some red flags, companies’ major problem continues to be finding enough workers.”
Employees are quitting their jobs at record numbers as they search for possible better opportunities. Companies are struggling to retain their current staff, while striving to fill open positions.
City supports closing beach parking lots
overnight to deter illegal activities
City of San Diego officials are considering closing parking lots at dozens of coastal parks and beach areas overnight in hopes of reducing illegal activities there.
Officials believe it will reduce problems with late-night parties, illegal bonfires, gang activity and unauthorized camping. The parks and parking lots, which span from La Jolla to Ocean Beach, would either be physically closed by installing new security gates or posted with signs announcing the overnight closures.
As the San Diego Union-Tribune reports, the Mission Beach and Mission Bay Park areas are of particular concern for officials, where they say unruly gatherings can lead to violence.
Feb. 8 Economic Forecast 2022
for the commercial real estate sector
CREW San Diego, a membership organization dedicated to promoting, educating and supporting professionals in the field of commercial real estate, will host Ryan Severino, chief economist at JLL, to discuss global, national and regional economic research, analysis and forecasts for commercial real estate markets.
The event on Feb. 8 (11:30 a.m. to 1:15 p.m.) will also include an intimate “fireside chat” with local commercial real estate leaders Misty Moore and Timothy Olson, who will lead a discussion focused on San Diego trends and implications around the growth of life science, the expansion of FAANG companies, countywide industrial demand and more.
Event location: Farmer & Seahorse Ballroom, 10996 Torreyana Road, San Diego 92121.
Cost: $50 for members, $75 for nonmembers, $40 for students.
Westcore acquires industrial property
for $54 million in Gresham, Ore.
Westcore, a San Diego-based industrial real estate acquisition, development and asset management firm, has acquired Halsey Business Park, an approximately 405,000-square-foot industrial facility in the Portland metropolitan area of Gresham, Ore. for $54.1 million. The property was sold by New York-based DRA Advisors.
The project is currently 100 percent leased to three tenants — American Direct, International Paper and Trailblazer Foods.
Westcore represented itself in the transaction, while Buzz Ellis, Mark Detmer, Ryan Sitov and Tyler Sheils of JLL represented the seller.
